Leeds launches impaired credit mortgage

29 June 2006

Leeds Building Society has unveiled a new shared ownership product aimed at providing mortgages to potential homeowners with bad credit histories.

The Society is prepared to consider a wide range of impaired credit ratings as part of its new branch-based offering.

These include County Court Judgements (CCJs) to a maximum of £3,000, with none in the last six months, and mortgage or rent arrears, with up to two missed payments in the last 12 months.

"We have created this innovative product to offer customers with impaired credit the opportunity to re-mortgage or purchase a share in a property at a competitive rate," said Stuart Fearn, Leeds' product development manager.

"It is well publicised that many first time buyers need a shared ownership product to get onto the housing ladder," he continued.

"We already offer shared ownership products for customers with good credit and it is clear that if a customer has impaired credit and needs shared ownership, they have very little opportunity to own their own home."

The new product also allows clients to borrow up to 100 per cent of the total value of the property and does not include higher lending charges (HLCs).